With inflation and rising interest rates, it’s probably no surprise that Canadian house prices are predicted to fall in 2023.
However, it looks like one sector isn’t being affected all too much.
According to the latest report by real estate brand Engel & Volkers, Canada’s luxury real estate market is thriving. Yup, even in this market.
The company’s 2022 Year-End Luxury Real Estate Market report found that while rising interest rates had “triggered market normalization,” many luxury markets are holding their value.
In Halifax, for example, the luxury real estate market actually grew in 2022. In 2021, homes priced over 1 million accounted for 2.6% of all units sold, which grew to 4.6% in 2022.
Moreover, the number of condos sold, which were priced between $1 and $3.99 million also increased, from 13 in 2021 to 20 in 2022.
In Montreal, sales volume dipped by 55% in the second half of 2022. However, despite this, the provinces saw the prices for all property types combined hold in the $1 million to $3.99 million range.
Ottawa’s $1 million-plus market saw year-over-year growth in sales volume.
In Toronto, the sales volume of condos priced between $1 – $3.99 million went up by a whopping 71% since 2020. Although, this is still down by 18% from 2021.
Finally, Vancouver saw increasing demand for condos priced between $1 – $3.99 million.
In this luxury segment, units sold increased by 95% year-over-year, with 62% of sales occurring in the first half of the year.
According to Anthony Hitt, president and CEO of Engel & Völkers, interest rates are just “not as disruptive to the ultra-premium markets” as buyers tend to purchase homes with much of the equity paid upfront.
So, if you have about a million to spare, things should be just fine. Whew?
But if not, and you’re looking at buying a house in Canada in 2023, there are things you can do to get on the property ladder.
This article’s cover image was used for illustrative purposes only.